A false signal which indicates that the price of a stock or index has reversed to an upward trend, but ultimately proves to be false.
The opposite of a bear trend; occurs when indicators suggest for an uptrend, but the market reverses its momentum and begins to fall again. [Back on Top
A signal which suggests that the falling trend of an index or stock has reversed but which proved to be false. Thus trap the bulls that acted on the signal with losses. A bull trap is a form of whipsaw and relates to the spring.
The situation when a bull market reverses its trend, or the price breaks upward, and bullish investors assume the advance will continue and take out long positions. The price then reverses itself again, and a new downtrend is formed with the consequential conclusion being that the bullish investors are trapped on the wrong side of the market and must long out their positions for a loss.